CFTC Staff Letter 20-14: Extension of No-Action Relief for Uncleared Swaps with the European Stability Mechanism

The Division of Swap Dealer and Intermediary Oversight extends no-action relief for registered swap dealers without a prudential regulator, allowing them to exclude swaps with the European Stability Mechanism from uncleared margin requirements until 30 days after the publication of the final rule amending regulation 23.151. This extension applies because the final rule, approved on April 14, 2020, is not yet effective. The relief replaces the previous position which was set to expire on April 14, 2020, or upon the effective date of the final rule, whichever occurred earlier.

CFTC published 6 documents in the last 30 days — get each new one by email the day it lands.

CFTC Letter No. 20-14 No-Action April 14, 2020

Division of Swap Dealer and
Intermediary Oversight
Joshua B. Sterling
Director
Re: Extension of Time-Limited No-Action Position with Respect to Uncleared Swaps with the European Stability Mechanism Ladies and Gentlemen:
On July 24, 2017, the Division of Swap Dealer and Intermediary Oversight (“DSIO”) of the Commodity Futures Trading Commission (“CFTC” or “Commission”) issued a staff no-action letter (“Letter 17-34”). 1 Letter 17-34 provided that DSIO would not recommend that the Commission initiate an enforcement action against a registered swap dealer (“SD”), for which there is no Prudential Regulator (“covered swap entity” or “CSE”), 2 that did not exchange margin for uncleared swaps entered into with the European Stability Mechanism (“ESM”), as required by Commission regulations 23.150-161. 3 On October 16, 2019, the Commission approved for publication in the Federal Register a proposed amendment to regulation 23.151 that would effectively exclude swaps between CSEs and the ESM from the Commission’s uncleared swap margin requirement, rendering Letter 17-34 moot (“Proposal”). 4 Upon Commission approval of the

Read the rest free, and get an email when CFTC publishes again

Email me when CFTC publishes something newOne email per publication, same day. Sign in below to keep reading.

Lineage: In force

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Timeline

This document amends: CFTC Staff Letter 19-22: Revised No-Action Position for Uncleared Swaps with the European Stability Mechanism, CFTC Staff Letter 17-34: No-Action Relief for Swap Dealers from Margin Rules for Uncleared Swaps with the European Stability Mechanism

Source: Commodity Futures Trading Commission — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works